How to clear your debt

Ready to clear your debt?
Ok, let's get started.

Even if it feels overwhelming right now, you can get out of debt.
You've already taken the first step.

If you're worried about debt, or looking for help paying off debt, then please know that you are not alone. Many of us are in the same position. So we've put together some free debt advice, to help you.

All of the steps in this plan are things you can start doing today.
Our members tell us that starting a debt management plan changed how they felt about their situation and gave them hope and confidence.

So whether your debts come from loans or credit cards, follow the steps below to get you back on track.

Steps 1 - 3: A plan that works for you

Step 1
List all your debts

To clear your debts, you need to know what your dealing with. That means listing out everything you owe.

Download this Debt reduction spreadsheet template to help you.

 

Step 2
Choose your method

There are two scientifically proven methods for paying down debt: snowball or avalanche. One is quicker, the other psychologically easier.

Click to learn more and pick your fave.

Step 3
Get yourself more time

If you have credit card debt, see if you can transfer the balance to a 0% interest rate. So you have more time to pay off your balance without racking up extra interest.

Click here to see a range of cards offering 0%.

Steps 4 & 5: Sort out your spending

Step 4
Get two current accounts

You should have one bank account where your salary goes in and your bills get paid. Then open a separate account for your spends - one that tracks your spending, so you never spend more than you have.

Open a Monzo or Starling bank account for your spending money.

 

Step 2
Cut your costs

Spend a day going through all of your bills and subscriptions. Cancel those you don't use and switch as many as you can to cheaper options to help you pay down your debt faster.

Use this checklist to help you.

Good job. You're on your way to clearing your debts.